Bank of Canada experimenting with digital currency

Bank of Canada experimenting with digital currency

Bank of Canada experimenting with digital currency The Bank of Canada is running experiments with lenders on interbank payment systems using distributed ledgers to get a better grasp of the technology, according to a report in the Financial Post.

The bank said it has no plans to issue digital currency for public use. According to a statement from Senior Deputy Governor Carolyn Wilkins, the central bank’s intention “is to build a proof of concept wholesale interbank payment system using a distributed ledger. The Bank’s goal in these projects is solely to better understand the technology first-hand.”

The Bank of Canada is working on the project with Payments Canada, Canadian commercial banks and the R3 consortium, a group of more than 40 banks, the Financial Post reported. R3 is working on ways to use the blockchain – technology used to verify and record transactions for digital currency – for money transfers, record-keeping and other back-end functions, according to the report.

“These are still conceptual research questions that are being investigated by many central banks,” Wilkins said.


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